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WEGrowUnlocking the Growth Potential of Women

Entrepreneurs in Latin America and the Caribbean

About the MIFThe Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB) works to support economic growth and poverty reduction in Latin America and the Caribbean through the promotion of investment and private sector development. As part of its program, the MIF seeks to support entrepreneurs and small and medium enterprises by creating a favorable ecosystem for early stage financing through angel investing, seed capital, and entrepreneurship. For more information, please visit: www.fomin.org.

About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies over the world. We develop outstanding leaders who team to deliver our promises to all of our stakeholders. In doing so, we play a critical role In building a better working world for our people, for our clients and for our communities. For more information about our organization, please visit www.ey.com/mx.

This publication is the result of a study commissioned by the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB), to EY. It has been prepared by EY Mexico with the cooperation and supervision of the MIF’s Early Stage Equity Group. The following people participated in the review process from the MIF: Susana Garcia-Robles, Monica Pina Alzugaray, Rebeca Granda Marcos, Xuan-Trang Ho, Lauren Murphy, Maria Teresa Villanueva, Yuri Soares, Georg Neumann, and Elizabeth Terry.

© 2014 Inter-American Development Bank. All rights reserved; may be freely reproduced for any non-commercial purpose. The opinion expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.

© 2014 Mancera S.C.Member of Ernst & Young GlobalAll rights reserved

Cover Image © FOMIN/USA/2013/Pablo López.This image was taken at WeXchange: The First Latin American and Caribbean Forum for Women Entrepreneurs, which took place on 11-12 December, 2013, in Miami, Florida, USA. www.wexchange.co

March 2014

WEGrow: Unlocking the Growth Potential of Women Entrepreneurs in Latin America and the Caribbean| | 1

TABLE OF CONTENTS

GLOSSARY .............................................................................................................................................. 2

EXECUTIVE SUMMARY .............................................................................................................................. 3

WHY SHOULD WE ANALYZE HIGH-GROWTH WOMEN ENTREPRENEURS IN LATIN AMERICA AND THE

CARIBBEAN? ........................................................................................................................................... 5

WHAT METHODOLOGY WAS USED TO DEVELOP THIS STUDY? ........................................................................... 9

WHO ARE THE REGION’S HIGH-GROWTH WOMEN ENTREPRENEURS? ..............................................................13

WHAT DEFINES THEIR ENTREPRENEURIAL ACTIVITIES? ..................................................................................17

WHAT DRIVES THEM AND WHO SUPPORTS THEM? .......................................................................................22

WHAT ARE THEIR DREAMS AND AMBITIONS? ..............................................................................................26

WHAT CHALLENGES DO THEY FACE? ..........................................................................................................28

WHAT DO HIGH-GROWTH MEN ENTREPRENEURS THINK ABOUT THEM? ...........................................................31

WHAT ADVICE WOULD YOU GIVE TO WOMEN ENTREPRENEURS WHO WANT TO GROW THEIR BUSINESSES? ............33

CONCLUSIONS AND RECOMMENDATIONS ...................................................................................................34

COMPARISONS BETWEEN GROUPS ............................................................................................................39

REFERENCES ..........................................................................................................................................47


GLOSSARY Entrepreneurial activity: For the purpose of

this report, entrepreneurial activity describes

the reason why the entrepreneur developed

her/his venture, the ambition with which

s/he started her/his business, if s/he has ever

considered closing it, the sector or industry in

which the business operates, the scope of

products and/or services offered, its

corporate structure and the existence of a

mentor to guide the entrepreneur along

her/his journey.

Ambition: Ambition refers to the

characteristics that differentiate successful

women entrepreneurs from less successful

ones, what is needed to transform a vision

into a real business.

Profile: For the purpose of this report, an

entrepreneur’s profile (for men and women)

represents the characteristics that describe

her or him. These include age, marital status,

number of children (if any), highest degree of

studies, whether they belong to an

entrepreneurial family, and their current

socio-economic level.

Smart capital: Financial support provided by

investors, who in addition to financing a

business, help in developing the business by

sharing their knowledge, experience,

network, and management skills.

Angel investor: Private investor, individual or

entity that provides smart capital to a new

high-potential business to foster its growth.

Seed capital: Funding used for the initial

investment in a venture to develop

prototypes, market research, or initial

production; provided with a long time

horizon and for the purpose of generating

profits, analyzing the development of new

technologies, or for different personal

incentives (giving back to society, starting

another business, self-development, etc.).

Seed capital has a high-risk/high-return

profile, higher than that of venture capital.

Venture capital: Financial support provided

after seed capital for the first business

expansion to meet needs related to working

capital, inventory, etc. It is provided with a 4-

5 year time horizon in order to maximize

financial returns.

High-growth women entrepreneurs:

Women entrepreneurs whose companies are

formal and have had at least 20% annual

growth in sales and/or employment for the

past three years.

High-growth men entrepreneurs: Men

entrepreneurs whose companies are formal

and have had at least 20% annual growth in

sales and/or employment for the past three

years.

Low-growth women entrepreneurs: Women


and have had between 10% and 19% annual

growth in sales and/or employment for the

past three years.

Cultural values: They refer to the beliefs,

customs and activities that members in

society have in common.


EXECUTIVE SUMMARY High-growth entrepreneurship has been

demonstrated to be a catalyst for high socio-

economic impact influence. Although just 5%

to 7% of all American businesses are high-

impact, these businesses create most of the

new jobs in the United States.1 Similarly,

according to a 2012 Endeavor report,2 high-

growth entrepreneurial companies annually

generate 30 more jobs than the average

comparable company.

High-growth entrepreneurs create jobs,

inspire existing and would-be entrepreneurs

to invest in their communities, and contribute

to their entrepreneurial ecosystems to

generate new businesses. Though each

entrepreneur and each company are

different, all share one thing in common:

their exceptional leadership, which allows

them to realize their vision and transmit their

passion to their teams, investors, and

communities.3

In the Latin American and Caribbean region,

little is known about high-growth

entrepreneurs and even less is known about

women whose companies achieve high

growth: Who are they? How did they

succeed in reaching this level of growth?

What motivates them? What are their biggest

challenges and ambitions? What do they

need to keep their businesses growing? This

1 The Vital Entrepreneur: High Impact at Its Best. (2013). EY,

Kauffman Foundation. 2 How High Is High Impact? (2012). Endeavor Global. 3 The Vital Entrepreneur: High Impact at Its Best. (2013). EY,

Kauffman Foundation.

report aims to collect information to get to

know them better and to explore common

aspects of women whose businesses have

experienced high levels of growth (referred

to as high-growth women entrepreneurs

onwards in this report).

Specifically, the objectives of this study are

to:

Identify them: Their profiles, needs,

challenges, and key factors that

contribute to the success of high-growth

women entrepreneurs in the region.

Analyze them: Compare and analyze

high-growth women entrepreneurs in the

region with their male counterparts and

with women entrepreneurs whose

companies have lower rates of growth.4

Encourage their participation: Propose

areas of intervention to promote high-

growth entrepreneurship among women

in the region.

The findings presented below are the result

of a study of entrepreneurs in nine regional

countries (Argentina, Brazil, Chile, Colombia,

Costa Rica, Jamaica, Mexico, Peru, and

Uruguay). In general, high-growth women

entrepreneurs in Latin America and the

Caribbean:

Are opportunity-driven and not necessity-

driven.

4 Entrepreneurs whose companies are formal and have had

between 10% and 19% annual growth in sales or employment for the past three years.


Are between 30 and 39 years old, live

with a partner, and have on average two

children.

Come from families with an

entrepreneurial background.

Currently belong to a high or medium-

high socio-economic level.

Have a college degree (bachelor’s degree

or equivalent).

Rely on their “business sense” and on

their technical expertise to start a

business.

Generally start their businesses in

traditional or mature sectors.

Started with the idea of growing their

businesses into medium or large

enterprises within their own countries.

Are majority owners of their businesses

and/or raised funding from their relatives

or friends.

Rely on their inner circles (partners,

family, and friends) to reconcile the

multiple roles that society expects from

them.

Want to continue growing their

businesses and would be willing to do

anything to bring their businesses to the

next level.

Have to deal with certain challenges in

order to grow their businesses, such as

lack of funding, fear of failure, and

conflicts between the multiple roles that

they play.

Seizing and capitalizing on the ambitions of

women entrepreneurs must be a priority for

the public and private sectors due to the

impact they generate in their economies and

communities. In addition, the entrepreneurial

ecosystem must be strengthened by

promoting better networks, exploring a

greater diversity of funding sources, and

promoting government policies that support

women entrepreneurs with balancing their

work and personal lives.


WHY SHOULD WE ANALYZE HIGH-GROWTH

WOMEN ENTREPRENEURS IN LATIN AMERICA

AND THE CARIBBEAN?

Because they could have the same impact as high-growth women entrepreneurs do in other developed economies.

Because there is a common belief that they face much more complex challenges than women in more developed economies.

Because there is no reliable historical information related to their profiles and their businesses.


In Latin America and the Caribbean, women

represent 41.6%5 of the economically active

population. The average rate of

entrepreneurial activity of women in the

region is 15%,6 with 71% starting their

businesses based on opportunity and 29% of

necessity.7

Opportunity-driven women entrepreneurs

are usually long‐term entrepreneurs and have

a greater impact on the economy than low-

growth entrepreneurs, mainly by creating

wealth and jobs, and by boosting innovation

when compared to low-growth women

entrepreneurs.

“In Latin America and the Caribbean, women

face much more complex challenges in the

formal economy than women in more

developed countries, such as: a lack of

policies and programs to support and

encourage entrepreneurial activity, excessive

norms and regulations, and restricted access

to credit.”8 Likewise, there are differences in

the entrepreneurship environment for

women across different countries in the

region.9

Women entrepreneurs face different

challenges in building high-growth ventures;

they not only have to deal with challenges to

start their companies, but also have to face

5 “Female labor force in Latin America and the Caribbean.”

(2012). World Bank Database. The labor force is defined as

the economically active population, all the people who bring

their work to produce goods and services during a given

period. 6 Global Entrepreneurship Monitor. (2013). 2012 Global Report. 7 Entrepreneurs motivated by need are those that venture

because they are unemployed and need a source of income.

Entrepreneurs motivated by opportunities are those who

venture to exploit a market opportunity, increase their

income, or seek economic independence. 8 Global Entrepreneurship Monitor. (2013). 2012 Global Report. 9 Women´s Entrepreneurial Venture Scope. (2013). EIU.

specific gender barriers in subsequent

phases when developing their businesses.10

Despite the efforts of the public and private

sectors to improve the entrepreneurial

environment, there is still a significant

gender gap in entrepreneurship (primarily in

terms of quantity and growth), which puts

the female population at a disadvantage.11

This is not only the result of a complex

entrepreneurial environment commonly

faced by women in the region, but also the

result of their own attitudes and motivations.

The most significant challenges that women

entrepreneurs face in growing their

businesses include: (i) their companies

typically begin with less capital than their

male counterparts, which translates into low

performance in terms of assets, revenues,

profitability and survival;12 (ii) women seem

to be hesitant to borrow money, as they

usually believe that their requests will be

rejected and that the amount of loans

available to them will not be sufficient to help

them grow their businesses;13 (iii) women

have greater difficulty developing networks

of contacts for their businesses;14 (iv) women

are affected to a greater extent by the

demands of work and personal life;15 (v)

women show greater fear of failure and less

10 The Vital Entrepreneur: High Impact at Its Best. (2013). EY,

Kauffman Foundation. 11 Global Entrepreneurship Monitor. (2013). 2012 Global

Report. 12 Scaling Up: Why Women-Owned Businesses Can Recharge the

Global Economy. (2009). EY. 13 Ibid. 14 Ibid. This refers to the relationships that help professionals

show their abilities and meet prospects that, ultimately, will purchase services from them and/or will recommend them to potential buyers.

15 Ibid.


confidence in themselves;16 (vi) women are

more likely to operate their projects without

employees; (vii) women are customer-centric

and rarely sell outside of their countries;17

and (viii) women often do not avail

themselves of specialized assistance to grow

their enterprises.18

In order for women to be able to achieve

high-growth entrepreneurship, they need

tools and programs tailored to their needs

and to the roles that they normally play in

family life. In addition, they need to have

follow up and support during subsequent

phases to sustain growth of their

businesses.19

In Latin America and the Caribbean, women's

self-confidence is lower than that of men:

56% of women considered themselves

capable of starting their own businesses

(compared to 68% of men who do).20 At the

same time, in the region, women are more

dependent on their husbands, partners and

relatives to start and grow their businesses.21

Although there are many factors that, to a

large extent, determine the decision to start a

business; such as age, employment status,

education, income level, contact networks

16 Scaling Up: Why Women-Owned Businesses Can Recharge

the Global Economy. (2009). EY. 17 Global Entrepreneurship Monitor. (2013). 2012 Women’s

Report. 18 Scaling Up: Why Women-Owned Businesses Can Recharge

the Global Economy. (2009). EY. 19 “Le développement de l’entrepreneuriat feminine.” (2013).

ILO. As example of the support programs tailored to the needs of women is the one carried out jointly by the International Labor Organization (ILO) and the WED (Women Entrepreneurship Development), in five countries in Africa and Asia. Its objective is to increase women-owned companies’ income by 50% and increase sales four times.

20 Scaling Up: Why Women-Owned Businesses Can Recharge the Global Economy. (2009). EY.

21 Global Entrepreneurship Monitor. (2013). 2012 The Women’s Report.

and perceptions of the environment,22 the

main differentiator for both men and women

high-growth entrepreneurs is their ability to

develop companies and businesses with great

impact in terms of long-term value creation

(including wealth and jobs), and to become

role models in the world of entrepreneurship.

Through their leadership, motivation and

knowledge, both high-growth men and

women entrepreneurs succeed, even in

adverse economic times.

Many high-growth women entrepreneurs

have overcome or simply ignored traditional

barriers and have made progress toward

strong, sustained growth with their

endeavors.

Detailed historical information about high-

growth women entrepreneurs in the Latin

American and Caribbean region does not yet

exist, affecting the visibility of the women’s

overall entrepreneurial activity in the region.

In addition, since it is a recent topic, the

number of success stories is not very high in

comparison to the many examples of

successful high-growth men entrepreneurs.

There are different initiatives driven by

women's organizations and networks that

can contribute to the empowerment and

autonomy of women, but these have not

been registered in statistical records and

have not been successfully systematized in

order to assess their impacts.23

According to estimates from the Global

Entrepreneurship Monitor (GEM), in Latin

America and the Caribbean, the number of

new companies established in 2012 was 7%

22 Global Entrepreneurship Monitor (2011). 2010 The Women’s

Report. 23 Women entrepreneurs in Latin America and the Caribbean:

Realities, Challenges and Obstacles. (2010). ECLAC.


higher than the previous year,24 which leaves

a gap for entrepreneurial activities to

continue developing. However, what is not so

obvious is the need to promote

entrepreneurship through increased

education, opportunity and support to

potential entrepreneurs.

In recent years, there has been a positive

change in the entrepreneurial ecosystem in

the region, evidenced by a greater number of

agencies, support networks and funding

sources that focus on providing specific

services to all entrepreneurs. According to a

study by EY titled, “Women: The Next

Emerging Market,” by eliminating the barriers

related to gender issues that currently

impede the progress of entrepreneurs,

companies would benefit from underutilized

talent. Women entrepreneurs not only have

creative ideas and ambitions, but also have

the capacity to bring new concepts and

products to the market.

24 Global Entrepreneurship Monitor. (2014). 2013 Global

Report.


WHAT METHODOLOGY WAS USED TO DEVELOP

THIS STUDY?


This study is based on quantitative and

qualitative data collected by online surveys,

face-to-face interviews, and focus groups

conducted across nine countries in Latin

America and the Caribbean (Argentina, Brazil,

Chile, Colombia, Costa Rica, Jamaica, Mexico,

Peru, and Uruguay). Information on the

perception of high-growth women

entrepreneurs was collected from different

players in the entrepreneurial ecosystem

(incubators, accelerators, associations of

entrepreneurs, and academic professionals).

Additionally, surveys were conducted with

427 entrepreneurs (306 women and 121

men) and 16 women executives. Eight focus

groups were conducted with different players

from the entrepreneurial ecosystem in all

countries analyzed except Uruguay. These

groups were comprised of high-growth and

low-growth entrepreneurs of both sexes; and

in some cases women executives and

relevant players in the entrepreneurial

ecosystem from the public and private

sectors.

The sample was divided into three groups:

High-growth women entrepreneurs: Women



sales or employment for the past three years.

High-growth men entrepreneurs: Men



sales or employment for the past three years.

Low-growth women entrepreneurs: Women


and have had between 10% and 19% annual

growth in sales or employment for the past

three years.

The statistics illustrated in all charts and

tables in this study derive from the surveys

and interviews conducted by the EY team,

unless otherwise noted.

54%

29%

17%

Entrepreneurs surveyed, by age

(% of total responses)

What is your age?

Entrepreneurs interviewed, by sex


High-growth women

entrepreneurs

20 – 29 10%

30 – 39 35%

40 – 49 30%

50 – 59 18%

60 + 7%

High-growth men

entrepreneurs

Low-growth women

entrepreneurs


Entrepreneurs surveyed, by industry


To which sector or industry does your business belong?

* Other includes sectors such as biotechnology, real estate, transportation, recycling, education materials, energy, and

public services.

TOPICS DISCUSSED DURING THE INTERVIEWS

Interviews with entrepreneurs:

Demographics: Age, marital status,

highest degree of studies, membership in

an entrepreneurial family, and corporate

background.

Year in which their business was

established.

Business description: Income/employees

—initially and currently, funding at the

beginning of their project, support

received, and opportunity cost of being

an entrepreneur.

When starting the business: Major

motivators and challenges.

Currently: Vision, objectives and

challenges.

Entrepreneurial Ecosystem: Rating the

entrepreneurial ecosystem in their

country, participation of the government

and the private sector, role of incubators

and accelerators, regulations that

2% 2% 2% 2%

2% 3%

3%

3%

4%

5%

5%

5%

6%

6% 6%

11%

12%

21%

Hospitality Construction Financial services Other services

Computing Agriculture Entertainment Industrial

Consumer goods Software Communications Health

Retail Internet Manufacturing Business services

Food and Beverage Other *


promote an entrepreneurial environment

(social security, taxes, procedures,

permits, licenses and patents), chambers

of commerce and agencies, universities

that promote entrepreneurship, capital

market development.

Advice for any player of the entre-

preneurial ecosystem.

Differences between men and women

entrepreneurs.

Definition of ambition and success for

men and women entrepreneurs.

Role of women in their country.

Characteristics of a successful entre-

preneur.

Interview with key players in the entrepre-

neurial ecosystem:

Rating of the entrepreneurial ecosystem.

Key players: Involvement of the

government, private sector, the role of

incubators and accelerators, regulations

that promote an entrepreneurial

environment (social security, taxes,

procedures, permits, licenses and

patents), chambers of commerce and

agencies, universities that promote

entrepreneurship.

Capital market development.

Promotion of and information on

entrepreneurial companies.

What should be done in order to increase

the prevalence of high-growth women

entrepreneurs?

What should be done to increase the

success of entrepreneurs?

What are the main motivators of an

entrepreneur when starting a project?

What are the main challenges that an

entrepreneur must face in order to grow?

What are the differences between men

and women entrepreneurs regarding

opportunities, leadership and

management?

What is the role that women play in each

of the countries?

Advice for any entity of the

entrepreneurial ecosystem, with the

purpose of accelerating the growth of

entrepreneurs.

The study was divided into the following phases:

Part I

Survey and profiling of high-growth women entrepreneurs and

comparative analysis relative to men

entrepreneurs and women whose business

has achieved lower levels of growth.

Part II

Interviews and showcasing of high-

growth women entrepreneurs. Focus

groups with high-growth women and men

entrepreneurs and players of the entrepreneurial

ecosystem.

Part III

Main challenges and suggested areas for

intervention/ways to encourage more women to pursue high-growth

entrepreneurship and for existing women

entrepreneurs to think more boldly about their

growth objectives.


WHO ARE THE REGION’S HIGH-GROWTH WOMEN

ENTREPRENEURS?

Women between 30 and 39 years of age who live with their partners and have on average two children.

They come from families with a history of entrepreneurship.

They belong to high or medium-high socio-economic levels and hold a bachelor’s or master´s degree.


1. GROWING UP IN AN ENTREPRENEURIAL FAMILY

INSPIRES AND SHAPES THE ENTREPRENEURIAL SPIRIT

Growing up in an entrepreneurial family is a

factor that shapes the spirit and the desire to

start up a business. Living in an environment

where one observes activities first hand and

listens to entrepreneurial parents’

conversations plants a seed that could

eventually lead to establishing a venture. This

is known as the “Kitchen Table Effect,” where

children from entrepreneurial families live

and learn from the family’s experiences and

consequences of starting a business. Three

out of four high-growth entrepreneurs in our

surveys, both men and women, come from

entrepreneurial families.

Both women and men who come from

entrepreneurial families have often been

inspired to start their own businesses.

However, when they leave their families and

are exposed to other people, men

entrepreneurs tend to look for mentors

outside their families to help them start and

grow their businesses, whereas women

entrepreneurs tend to look for mentoring

within their own families. In many cases,

their mentors do not have up-to-date

business experience or the knowledge

needed to maximize the business’s potential.

2. HIGHER EDUCATION IS KEY, AND INTERNATIONAL

EXPERIENCE MAKES A DIFFERENCE

Being exposed to an academic environment

and international experiences can make a

difference in how fast a business can grow;

these experiences improve an entrepreneur’s

ability to network and also positively shape

his or her ambition to grow.

Data show that men entrepreneurs have not

only achieved higher educational levels, but

also have had the opportunity to study

abroad in higher percentages.

Level of education


What is your highest level of education?

Although the majority of men and women

entrepreneurs hold a bachelor’s degree,

there is a significant difference in the level of

studies completed by each group. Half of the

high-growth men entrepreneurs surveyed

have a graduate degree (Master’s or PhD),

compared with only 22% of high-growth

women entrepreneurs and 24% of low-

growth women entrepreneurs.

Approximately a third of women

entrepreneurs (high and low-growth) have

had the opportunity to study abroad,

compared to 60% of men who have

experienced education outside their country.

24%

54%

22%

10%

40%

50%

15%

61%

24%

0%

10%

20%

30%

40%

50%

60%

70%

Elementary,middle or high

school

Bachelor orequivalent

Master´s orPhD

High-growth women entrepreneurs

High-growth men entrepreneurs

Low-growth women entrepreneurs


International educational experience


Have you had the opportunity to study abroad?

Exposure to international experiences

benefits and shapes an entrepreneur’s

profile, as s/he benefits from a broader

business perspective, learns new ways to face

challenges, gains cultural awareness and

improves the ability to identify new business

opportunities. Thus, encouraging women to

get international experiences is key to their

success.

3. AGE AND MARITAL STATUS DO NOT MAKE A

DIFFERENCE, BUT WOMEN TEND TO LAUNCH

VENTURES LATER IN THEIR CAREERS

Most high-growth women entrepreneurs are

young adults (70% are between 20 and 49

years old), are highly educated (at least 76%

hold a bachelor’s degree), and have the

support of their families and spouses (63%

are either married or live with their partner)

in the different stages of their venture.

As with the majority of high-growth women

entrepreneurs, most high-growth men

entrepreneurs (82%) are younger than 50

years old. However, data suggests that men

tend to launch their ventures at a younger

age, as 18% of them are between 20 and 29

years old, compared to only 7% of women

entrepreneurs (both high and low-growth).

Regardless of their sex, most entrepreneurs

are either married or live with a partner.

35%

60%

32%

65%

40%

68%

0%

20%

40%

60%

80%

100%

High-growthwomen

entrepreneurs

High-growthmen

entrepreneurs

Low-growthwomen

entrepreneurs

No

Yes


0%

20%

40%

60%

80%

Married orliving with

partner

Single Divorced Widowed




WHERE DO THE DIFFERENCES LIE?

High-growth women

entrepreneurs

High-growth men

entrepreneurs

Low-growth women

entrepreneurs

Have studied abroad

35%

60%

32%

Are between 20 and

29 years old 7% 18% 7%

Have parents with a

bachelor’s degree 48%

70%

51%

Prevailing MIH25

High and medium-

high 72%

High and medium-

high 96%

High and medium-

high 73%

Note: Fields shaded in yellow denote significant differences with the other groups studied.

25

MIH: the monthly income level per household is derived from the income ranges as they are defined by each country’s national statistics office.

Age (% of total responses)

What is your age range?

Marital status (% of total responses)

What is your marital status?

0%

10%

20%

30%

40%

50%

20-29 30-39 40-49 50-59 60-+



Low-growth women entrepreuneurs


WHAT DEFINES THEIR ENTREPRENEURIAL

ACTIVITIES?

They trust their “business sense” and their technical knowledge to start their businesses. They do so in traditional or mature sectors and their initial goal is to have a medium or large domestic company.

They are majority owners of their businesses and primarily partner and source funding from family and friends.

Their current business is their first business and they have not thought of closing or selling it when faced with economic problems or conflict managing their time.


1. THEY LOOK FOR OPPORTUNITIES IN FAMILIAR

SECTORS

Most high-growth women entrepreneurs, like

their male counterparts, ventured driven by

opportunity, as they either identified or

created a need for their products in the

market. This opportunity is further reinforced

by the fact that the majority of entrepreneurs

have the technical knowledge required in

their sector.

Reasons to start their businesses

(% of responses)

Why did you choose this kind of business?

* Others include reasons to venture, such as exploring a

new sector, had contacts from the sector that inspired

or supported me, or the company was passed on to

me.

2. THEIR AMBITION CHANGES OVER TIME

Unlike men entrepreneurs, high and low-

growth women entrepreneurs began their

projects with the ambition to grow them only

to the national level; that is, they did not

have the aspiration to create businesses with

regional or international reach.

However, over time, and as their businesses

expand, the national market begins to look

small to them. It is at this point where

thinking bold and outside their countries

becomes their next challenge, therefore,

their ambition changes.

Initial objective when starting their

businesses

(% of responses)

What would be your ultimate objective in

starting your own business?

44% 40% 46%

45% 51% 41%

11% 9% 13%

0%

20%

40%

60%

80%

100%

High-growthwomen

entrepreneurs

High-growthmen

entrepreneurs

Low-growthwomen

entrepreneurs

Others*

Market opportunity

I had the technical knowledge and skills26%

61%

30%

30%

17%

25%

44%

22%

45%

0%

20%

40%

60%

80%

100%

High-growthwomen

entrepreneurs

High-growthmen

entrepreneurs

Low-growthwomen

entrepreneurs

Medium to large-size player in my home market

Self-sufficient company with local scope

Quickly scale-up and reach international scope


3. THEY VENTURE ALONE OR PARTNER WITH

RELATIVES

Most women entrepreneurs own or are

majority shareholders of their businesses.

However, those who decide to partner prefer

to choose family and friends. About 50% of

female entrepreneurs (high and low-growth)

have partnered with family or their significant

others, while 60% of men have partnered

with friends, colleagues or other

entrepreneurs. Only 18% of high-growth men

entrepreneurs have a partnership with their

wives (4%) or a family member (14%).

Partners

(% of responses)

With whom did you partner when you started

your business?

*Others include friends from school, other

entrepreneurs, specialists in other areas of the value

chain of their companies, and other people from their

networks.

4. THEY SEEK MENTORSHIP

The data suggest significant differences

regarding the use of mentoring or coaching.

While 64% of men have mentors who help

them focus on business issues, 56% of high-

growth women entrepreneurs and 50% of

low-growth entrepreneurs access this type of

support. Despite the fact that at least half of

the entrepreneurs in all three groups have

some kind of guidance, it is evident that for

both sexes, male mentors are more

prevalent. Only 1% of men and 6% of high-

growth women have only women mentors,

while 9% of high-growth women and 36% of

men have only male mentors.

Both male and female entrepreneurs would

benefit from having greater diversity in their

teams of mentors and advisors.

Entrepreneurs with a mentor

(% of responses)

Do you have a business mentor?

21% 9%

18%

32%

73%

26%

23%

4%

28%

24% 14%

28%

0%

20%

40%

60%

80%

100%

High-growthwomen

entrepreneurs

High-growthmen

entrepreneurs

Low-growthwomen

entrepreneurs

FamilySpouse/partnerFriends/colleagues/others*None

44% 36%

50%

6%

1%

4% 9% 36% 12%

41% 27%

34%

0%

20%

40%

60%

80%

100%

High-growthwomen

entrepreneurs

High-growthmen

entrepreneurs

Low-growthwomen

entrepreneurs

Yes, I have female and male mentorsYes, I only have male mentorsYes, I only have female mentorsNo


5. THEY START THEIR BUSINESSES IN SECTORS

TRADITIONALLY TIED TO WOMEN

Another important contrast between the

sexes results from comparing sectors where

they have their businesses. Women

entrepreneurs, both high and low-growth,

are disproportionately found in more

traditional sectors or sectors associated with

their sex. That is, women entrepreneurs are

more concentrated in sectors such as food

and beverages, services, manufacturing and

retail, while men tend to focus on less

traditional sectors which require more

innovation, such as Internet or software

development.

6. THEY HAVE LESS INTERNATIONAL REACH

Companies of high-growth men entre-

preneurs have better international exposure

than those of women entrepreneurs, as more

men have been able to place their products

and services in regional or international

markets. This difference could be explained

not only by the ambitions women

entrepreneurs had when they started their

business, since 76% were not expecting to

expand internationally, but also by their more

cautious attitudes. They tend to partner with

people from their inner circles; therefore,

their partners and mentors, like them, often

do not have a professional or international

background.

7. THEY TAKE LESS RISK THAN MEN

Women and men have different entre-

preneurial profiles since each group faces

challenges and makes decisions differently.

As shown by the data, high-growth men

generally are more risk seeking than women,

as they tend to venture into more innovative

sectors and to partner with people outside

their families, such as colleagues and other

entrepreneurs. Also, 67% of these men have

launched ventures more than once, as

compared to 38% of high-growth women and

25% of low-growth women entrepreneurs

who have owned more than one company.



High-growth women

entrepreneurs



Main sectors where they started their

business

Food and beverages Business services Manufacturing

Software Internet Business services

Food and beverages

Business services Retail

International reach

40%

71%

27%

Main ambition when starting their

businesses

Medium or large domestic company

Multi-million dollar company with

international reach


Is the principal owner

73%

35%

68%

Principal partner (or co-owner)

Family Spouse or partner

Friends/family Colleagues




WHAT DRIVES THEM AND WHO SUPPORTS

THEM?

High-growth women entrepreneurs are driven by opportunity to start their businesses.

In starting and moving forward with their businesses, they rely on their inner circles (spouses, family and friends).


1. THEY RELY ON THEIR INNER CIRCLES TO LAUNCH

AND GROW THEIR VENTURES

For women entrepreneurs, support from

their inner circles is critical when starting

their own businesses. Surveyed women

stated that their spouses, family, and friends

were their main supporters when they

started their companies and continue to be

so when they decide to grow them. Women

entrepreneurs are characterized by relying on

their spouses and families to support them

throughout their entrepreneurial ventures

and in their personal lives.

For men entrepreneurs, support from their

family, friends and spouses was also critical at

the time of starting their businesses,

although as time passes by and as their

businesses expand, they rely on support from

other sources. In taking their businesses to

the next level, men tend to rely more on their

mentors, private investors, and

entrepreneurial networks, which are only the

second choice for women entrepreneurs.

Support to grow their businesses

(% of total responses)*

Given the following options, choose the three main sources of support you count on now to grow your

business

* Other sources of support with low response rates are not included in the chart. These include sources such as

government, incubators, networks, other entrepreneurs, private sector advisors, angel investors, seed capital and

venture capital funds.

19% 14%

12%

15% 13%

8%

10%

7%

10%

7% 9%

9% 8%

8%

9%

0% 10% 20% 30% 40% 50% 60%

Friends

Friends

Friends

Private banks

Spouse/partner

Family

Family

Family

Spouse/ partner

Entrepreneurial associations

Private investment Mentors

Mentors

Entrepreneurial associations

Private banks





2. THEIR MAIN SOURCE OF FINANCING IS THEIR

INNER CIRCLES

The main source of financing for women

entrepreneurs is their inner circles, both

when they start up their businesses and

when they expand them.

In line with the main sources of financial

support for women entrepreneurs, when

starting their businesses many of them use

their savings or build their capital with the

help of their families or friends. In general,

this is due to the lack of financing options

available to entrepreneurs, both men and

women, when they begin their businesses.

Banks are designed to lend based on

collateral rather than on the potential of a

project, and other sources, such as angel

investors, seed capital or venture capital, are

still not that common in some countries in

the region.

Successful women entrepreneurs who raised

capital from investors, such as angel

investors, seed capital, or venture capital

funds, did so with the intention of obtaining

something more than just capital: smart

capital.

The data indicate that 70% of high-growth

women entrepreneurs obtain funds from

their families, friends or from their own

savings, which is lower than the rate of low-

growth women entrepreneurs and higher

than the 62% of high-growth men

entrepreneurs who do it. The rest of them

capitalize through loans or funds provided by

the private and/or public sector.

The second most common source of financing

for women entrepreneurs is bank loans.

Initially, to venture, 15% of high-growth

women and 6% of high-growth men obtain

financing through banks. Later in the

development cycle, around 28% of high-

growth women and 17% of high-growth men

use bank loans to finance their growth.

This difference could be explained by the

support they find in other sources, such as

angel investors, seed capital, venture capital,

or private investors. This is due to the fact

that men entrepreneurs tend to move

further away from their inner circles seeking

to diversify their sources of support and

financing. So one can conclude that men are

willing to take more risks and try to surround

themselves with people who have the

knowledge to add value to their businesses.

Sources of financing used for venture

(% of responses)

Which was the main source of financing you used

to start your venture?

*Others include financing sources, such as the

government, incubators, accelerators, and private

investors.

54% 50%

64%

16% 12%

20% 15%

6%

11% 4%

8%

3% 11% 24%

2%

0%

20%

40%

60%

80%

100%

High-growthwomen

entrepreneurs

High-growthmen

entrepreneurs

Low-growthwomen

entrepreneurs

Others * Partners

Private banks Family/friends

Savings


3. THEY ARE MOTIVATED BY A PASSION FOR

OWNING THEIR OWN BUSINESSES

High-growth women entrepreneurs were

driven by a market opportunity to start their

businesses, a factor that influences their

motivation and ambition to manage their

organizations and plan how far they want to

get. Just like high-growth men entrepreneurs,

these women entrepreneurs placed their

stakes on an idea that sought to satisfy a

need in the market, which they identified or

created by introducing their products or

services. An 88% of these women are

motivated to do what it takes for their

companies to continue growing.

High-growth women entrepreneurs have

shown strong passion for their ideas and

businesses from the onset. This urge to have

their own businesses was the main driver

behind in their becoming entrepreneurs, and

continues to be one of their main reasons to

grow their businesses. Likewise, they rely on

their desires to be economically independent

and see their businesses as personal

challenges, which motivate them in their

expansion and development plans. In

addition, 15% of women entrepreneurs

believe that doing something worthwhile,

such as providing employment, is a motivator

to keep them focused on growing their

businesses.

Similarly to high-growth women, the other

two groups of entrepreneurs are mainly

motivated by a passion for owning their

businesses and the financial independence

they achieve.

Motivations of high-growth women

entrepreneurs

(% of responses)*

Choose your motivations for starting up your

business

When they started their businesses

Choose your motivations for growing your

business

As their businesses grow

*Other motivations with low response rates are not

included in the chart. These include motivators such as

make more money, be an example for children or

other women, flexibility and left my family be

protected.

10%

14%

18%

18%

To employ others/dosomething worthwhile

Personal challenge

Financial independence

Passion for ownbusiness

12%

14%

15%

16%

Personal challenge

To employ others/dosomething worthwhile

Passion for ownbusiness

Financial independence


WHAT ARE THEIR DREAMS AND AMBITIONS?

Six out of ten high-growth women entrepreneurs say that they have exceeded their initial goals.

Only two out of ten feel completely satisfied with their achievements.

Almost 90% replied that they want to continue growing their businesses, and 88% are willing to do whatever it takes to take their businesses to the next level.


1. AMBITION FOR GROWTH … BALANCING THEIR

PERSONAL AND PROFESSIONAL LIVES

High-growth women entrepreneurs have the

motivation and determination to achieve

their objectives of improving and developing

their businesses. Ambition is the engine that

motivates them to abandon conformity.

Despite the fact that 65% of them state that

they have exceeded their initial objective,

88% of women entrepreneurs assert that

they are willing to do what it takes to bring

their businesses to the next level. This is due

primarily to the fact that many of these

entrepreneurs do not feel that they have

achieved enough, and that there is room to

grow their businesses and set new goals.

It is worth noting that there are no significant

differences in satisfaction levels between

men and women when they reach the same

growth level. However, when analyzing their

original ambitions, men had greater original

aspirations than women. While 61% of men

sought to turn their enterprises into

companies with international scope, only 26%

of women wanted to achieve this goal. At the

initial stages of their ventures, women

entrepreneurs tend to show less ambition

than men entrepreneurs. However, as their

businesses grow and consolidate, these

women entrepreneurs become as ambitious

as men entrepreneurs, creating plans to

move their businesses forward and to expand

them to new markets.

Women entrepreneurs understand the

implications of having to carry out other tasks

at home and take care of their children, in

addition to seeing their businesses grow.

Even though they are willing to do what is

takes to grow their businesses, they seek to

maintain a work life balance.


WHAT CHALLENGES DO THEY FACE?

The two biggest challenges high-growth women entrepreneurs face when starting their businesses are the lack of financing and the fear of failure.

As their businesses grow, they face conflicts regarding the multiple roles they play.


1. LACK OF FUNDING IS THE MAIN CHALLENGE IN

STARTING A BUSINESS

For both men and women entrepreneurs lack

of financing is the main challenge they have

to face. When they are starting their

businesses, they usually obtain their funding

primarily from their personal savings and

from funds provided by their family and

friends. In this first phase, they perceive that

access to other institutional financing sources

is complicated or does not exist. In the

expansion phase, this lack of funding is no

longer a major barrier for men

entrepreneurs, but it continues to be a

barrier for women entrepreneurs. This could

be explained by the fact that it is easier for

men (thanks to their networks) to access

other funding sources, such as angel

investors, seed or venture capital funds.

2. IN TIME THEY GAIN CONFIDENCE, BUT ALSO

START TO WORRY ABOUT THE BALANCE OF THEIR

PROFESSIONAL AND PERSONAL LIVES

For both high and low-growth women

entrepreneurs, the fear of failure is the main

personal challenge they have to deal with

when they decide to start their businesses. As

their businesses grow, they start gaining

more confidence in themselves and in their

ability to manage their businesses

successfully. However, in the growth stage,

maintaining a balance between their family

and professional lives becomes their main

personal challenge. During the interviews

conducted with high-growth-women

entrepreneurs in the region, most of them

thought that starting their own businesses

would give them greater flexibility, especially

in balancing their professional and personal

lives. In order to reach this balance, they rely

on the support provided by their families or

friends. Although playing both roles at the

same time is not an easy task, women in this

situation believe they are a source of

inspiration for their children, and a role

model for other women.

3. DISCRIMINATION IS LEFT BEHIND WHEN THEY

MOVE FORWARD

Our study showed that 88% of high-growth

women entrepreneurs do not feel

discriminated against because of their sex,

which reveals the progress and positioning of

this group. However, many of them said that

at the beginning of their businesses they had

more difficulties than men in opening doors

and making their business grow. Men

entrepreneurs recognize there is still a

problem in the entrepreneurial environment

regarding discrimination against women, and

they believe this represents the main factor

that limits women’s development and

performance as entrepreneurs.

4. BEING CONNECTED IS A NECESSITY AND AN

ADVANTAGE

Women master the technical knowledge and

management skills they need to compete in

the sectors where their businesses operate.

They have acquired knowledge since they

started up their businesses and have

developed their skills as a result of

experience. However, they are challenged

when they have to connect with the outside,

as their lack of commercial or negotiation

skills and limited or ineffective contact

networks hinder their potential to grow their

businesses.


5. ONE THIRD OF ENTREPRENEURS DO NOT FACE

CULTURAL CHALLENGES

Around 30% of women and men

entrepreneurs believe that they are not faced

with any socio-cultural barriers that prevent

them from making their companies grow.

However, within the group of entrepreneurs

who say they are dealing with challenges

linked to society and culture, the majority

mentioned that their biggest challenge is the

poor perception of entrepreneurship in

society and the media.

6. THEY DEAL WITH CHALLENGES RELATED TO THE

ECONOMIC REALITY IN THEIR COUNTRIES

In general, the challenges related to the

market and business environment that

entrepreneurs of the three groups are

dealing with are linked to the economic

situation of each country.

Economic weakness, uncompetitive

regulatory environment, insecurity, and the

lack of government support are major

obstacles that entrepreneurs have to face in

order to develop their businesses.

High-growth women

entrepreneurs

High-growth

men entrepreneurs

Low-growth

women entrepreneurs

Main personal challenge faced

When they start their businesses

Fear of failure Maintaining

work/life balance Fear of failure

In growing their businesses Maintaining

work/life balance

Do not face any challenge

Maintaining

work/life balance

Main social challenge faced

When they start their business

Do not face any

challenge


Do not face any

challenge

In growing their businesses Do not face any

challenge


Do not face any

challenge

Main business challenge faced

When they start their business

Lack of access to

funding

Lack of access to funding

Lack of access to funding/strong competition*

In growing their businesses Lack of access to

funding

Quality of the labor force

Lack of access to

funding

*Strong competition refers to a great number of businesses offering the same product as the entrepreneurs do.



WHAT DO HIGH-GROWTH MEN ENTREPRENEURS

THINK ABOUT THEM?

“The difference between men and women is that men are more willing to take risks.”

“For women it is difficult to find a work-life balance, especially when they have children.”


Despite the increase in the number of

businesses led by women in the last few

years, high-growth men entrepreneurs still

perceive that women entrepreneurs have to

overcome more barriers than they do to be

successful. While men acknowledge that all

entrepreneurs, regardless of their sex, face

obstacles linked to the business environment,

they recognize that women face a series of

challenges linked to women’s traditional roles

in society and family life.

In addition to the challenges faced by women

in looking after their families and children,

men also say women have to overcome their

lack of self-confidence and their aversion to

risk in creating, running and expanding their

businesses. When asked, 25% of men say that

women entrepreneurs are not fully convinced

that they will be successful when they start

up their businesses.

In spite of their opinions regarding the

challenges faced by women entrepreneurs,

90% of men believe that women are as

capable as they are to create businesses.

Challenges faced by women entrepreneurs according to men

(% of responses)

Which do you believe are the five main reasons in your country keeping women entrepreneurs

from becoming high-growth entrepreneurs?

* Maintaining a work-life balance, conflict among the several roles performed by a woman, and activities related to their

household and childcare responsibilities.

23%

21%

18%

10%

7%

7%

7%

7%

Traditional role of women* Risk aversion and insecurity

Business environment Discrimination and lack of acceptance

Lack of financing Poor perception of entrepreneurship

Lack of family support Business skills


WHAT ADVICE WOULD YOU GIVE TO WOMEN ENTREPRENEURS WHO WANT TO GROW THEIR BUSINESSES?

PROVIDED BY HIGH-GROWTH WOMEN AND MEN ENTREPRENEURS

1. BE MORE CONFIDENT “Be confident. This will allow you to fight and show the potential that you still do not know you have.”

Woman Entrepreneur – Mexico

“Be self-confident, this will give you perseverance, a lot of potential and a lot of energy to move forward in difficult times.”


“Be confident, enthusiastic and believe in what you are doing. If you believe in yourself, things will work out. If you believe in your business, think beyond the horizon you are facing.”

Woman Entrepreneur – Peru

“Be confident even if you do not know how to implement your idea. It is important to go slowly.”

Woman Entrepreneur – Colombia

2. LOOK FOR TRAINING AND SUPPORT “Look for training and adequate funding to bring your idea forward.”


“Rely on mentors and keep training to identify your needs.”


3. GO AHEAD, IT IS YOUR IDEA AND YOUR COMPANY “Talk about your idea. People think that if they talk about their idea, someone is going to steal it, but only an entrepreneur can transform an idea into a company.”

Woman Entrepreneur – Argentina

“Do not allow someone to tell you “NO,” since you know your business better than anyone else. You should have confidence and believe in what you are doing.”


“Understand your competitive advantage; we have the ability to take on any challenge.”


1. LISTEN TO YOURSELF

“Do not always listen to others, listen to yourself instead.”

Woman Entrepreneur – Chile

2. PAY YOURSELF FOR YOUR

WORK

“If you are a woman entrepreneur, pay yourself a salary, just as if you were any other employee.”


3. RELY ON OTHERS

“If you want to go fast… do it alone, if you want to go far… you have to be accompanied.”

Woman Entrepreneur –Argentina

1. HAVE CONFIDENCE AND DO

NOT BE AFRAID TO FAIL

“Women entrepreneurs are aggressive and assertive, but I think that it takes them a little more time to fulfil their objectives because they are too analytical. To be successful you must be confident, take risks, and not be afraid to fail."

Man Entrepreneur – Jamaica

“Develop confidence in ignoring the stereotypes associated with women.”

Man Entrepreneur – Costa Rica

2. TAKE RISKS

“The difference between men and women is that men are more willing to take risks. Also, women and men measure success differently.”

Man Entrepreneur – Argentina

What do women entrepreneurs say is

the best advice they received?

What advice do men entrepreneurs

offer to women?

What advice should women entrepreneurs give to other

women who want to start businesses?


CONCLUSIONS AND RECOMMENDATIONS

Strengthen the entrepreneurial ecosystem for women through:

Access to finance

Contact networks

Support and learning


The main challenge faced by entrepreneurs in

the region is the lack of access to financing

and capital.

More than 50% of women entrepreneurs

have funded their company with personal

resources together with funding from family

and friends. In most cases, as their companies

start to grow, they look for other financing

options, such as bank loans. On the other

hand, men entrepreneurs tend to access

more diverse sources of funding and equity

funding, such as angel investors, and seed

capital and venture capital funds.

With greater knowledge and access to

different types of funding, women

entrepreneurs could avail themselves of a

more diverse mix of capital to expand their

operations, enter new markets, integrate

new technologies, and hire key talent to help

them improve their companies’ operations

and strategy, among other benefits.

Following are some recommendations on

how to increase access to finance for women

entrepreneurs:

1. THEY WANT SOMETHING MORE THAN JUST

FINANCING

The process of securing sources of financing,

including external equity, implies that the

business plan be thoroughly analyzed. The

feedback arising from potential investors can

provide valuable suggestions to women

entrepreneurs around how to grow their

business more effectively.

Women entrepreneurs should look for smart

capital, which also provides mentorship and

guidance that could increase their ventures’

probability of success.

2. ENCOURAGE THEM TO SEEK NON-TRADITIONAL

FINANCING

The different players of the entrepreneurial

ecosystem should focus on increasing funding

instruments and distribution channels to

encourage and increase entrepreneurial

activity in the region. Thus, it is necessary to

evaluate the design of low-risk financing

instruments, and to design strategies to

increase public and private sector investment

in order to accelerate growth in new

ventures.

3. INFORM WOMEN ABOUT DIFFERENT FINANCING

RESOURCES

To grow their businesses to the next level,

high-growth men entrepreneurs tend to rely

more on their mentors, private investors and

entrepreneurial networks, while women tend

to rely less on these. Thus, it is necessary to

encourage women entrepreneurs to diversify

their funding sources as well as to identify

when they need to raise this capital.

Accelerators and incubators play an

important role in attracting more women

entrepreneurs, as these organizations could

increase the entrepreneurs’ mentoring and

networking resources.

Access to finance

A common challenge


The three types of entrepreneurs analyzed

believe that having an effective network

group is one of the main factors that

contribute to the success of an entrepreneur.

However, women entrepreneurs from both

groups reveal that they have limited or

ineffective networks, which represents one of

the challenges most often mentioned.

Due to the different roles that women hold,

they tend to have limited time and locations

for networking and establishing new

contacts; the time during which they are not

working, they spend with their families, their

partners, and taking care of their home.

Consequently, it is important to use players in

the entrepreneurial ecosystem such as

investors, universities, the labor market and

the media, as platforms for exposure and as

links to the business environment. Following

are some recommendations on how to

increase their networking skills:

1. MAKE EDUCATION MORE FLEXIBLE AND OFFER

INTERNATIONAL EXPERIENCE

For women entrepreneurs, being exposed to

more enriching academic environments and

international experiences could make a

difference in the rate of growth in their

businesses, their ability to create connections

and generate a wider contact network, and

their ambitions for what they would like to

achieve within their businesses. Therefore,

developing more flexible higher education

programs (bachelor’s, master’s and doctorate

degrees) is recommended, so that

women entrepreneurs can update their

knowledge and increase their experiences.

2. MAXIMIZE THE POTENTIAL OF THEIR CONTACT

NETWORKS

Women entrepreneurs need to focus on

networks that will aid their businesses’

growth. They should have a clear

understanding of their current relationships,

and the relationships they wish to have, and

they need to be selective in their efforts to

expand their networks. This begins with an

honest inventory of their skills and the needs

of the company, followed by a deliberate

effort to connect to the right key people.

Such a network of contacts will allow them to

easily be able to contact key people who will

help them find new opportunities and ideas

or different perspectives in order to lead their

business to the next level; create close

professional circles that will supplement their

knowledge with topics that are relevant to

the successful operation and management of

their businesses; and build circles of trust in

which they will acquire advice, guidance and

objective feedback.

Furthermore, as businesses grow and

consolidate, women entrepreneurs may

choose to formalize their contact networks by

establishing a Board of Directors or Advisory

Board, which allow them to acquire guidance

and coaching over time, in addition to getting

feedback that could be applied when growing

their businesses. Similarly, contact networks

can foster synergies through the exchange of

Contact network

Being an entrepreneur is not a lonely job


management skills and best practices within

specific industries.

3. CREATE INTERNATIONAL NETWORKS

Nearly ninety percent of women

entrepreneurs in the study indicated that

they would do anything within their reach in

order to maximize the potential of their

businesses, and given the fact that exposure

abroad often leads to valuable new

relationships. To do so, women should

consider: (i) associating themselves with

organizations that have global reach and

presence, and reaching out to commercial

and sectorial chambers; (ii) participating in

public or private trade missions with other

countries; (iii) establishing contacts with

possible buyers or commercial partners

outside of their domestic market in order to

explore the possibility of collaboration, (iv)

attending business entrepreneurship events

in other countries; (v) maintaining ongoing

contact with business accelerators and other

organizations which support entrepreneurial

activities.

4. ESTABLISH A HIGH PERFORMANCE TEAM

Based on the interviews done with women

entrepreneurs, one observes that they have

difficulty delegating their companies’ daily

activities to others, which leads to their not

being able to focus as much on the strategic

end of their businesses. Women

entrepreneurs should create teams that

enable them to delegate the operation and

supervision of daily tasks.


Given the vast economic potential that

women entrepreneurs represent in the

region, it is important that governments and

society take part in creating supportive

resources that will promote women’s

entrepreneurship and establishment in the

business sphere. Following are some

recommendations on how to improve the

entrepreneurial environment:

1. IMPROVE CHILDCARE PROGRAMS

According to the survey data, 80% of the

women entrepreneurs interviewed have

children. The balance between family and

professional life is their main challenge when

trying to expand their companies. They have

expressed that having higher quality childcare

will allow them to concentrate on other

activities, whether professional or personal.

In general, the high-growth male

entrepreneurs are younger than the high-

growth women entrepreneurs (60% of the

women entrepreneurs are over 40 vs. 40 % of

high-growth male entrepreneurs). This

reflects the effect of low quality childcare,

which could cause delay in activity for

younger women entrepreneurs.

Governments and the private sector should

create programs that promote childcare,

including specialized daycare centers (e.g.,

those that can attend to sick children, or

provide support in other emergencies) and

possibly even daycare co-located with

business incubator or accelerator facilities in

order to increase the number of younger

women entrepreneurs.

2. CELEBRATE SUCCESS STORIES

Celebrating and recognizing the

accomplishment of women entrepreneurs

can help to build positive perceptions of their

role in the business sphere. Furthermore,

these successful women could become role

models for others to follow. In promoting

their achievements and how they have

overcome their obstacles, they may provide

other women entrepreneurs with inspiration

and information to help them carry their

businesses forward.

Government, entrepreneurship support

organizations, the private sector, and the

media play crucial roles in promoting

examples of successful women

entrepreneurs. It is important they provide

opportunities to share them at national and

regional levels.

Support and learning Improving the entrepreneurial environment


COMPARISONS BETWEEN GROUPS



High-growth women

entrepreneurs

High-growth men

entrepreneurs

Low-growth women

entrepreneurs

Age Prevailing response

30 – 39 32%

30 – 39 40%

40 – 49 35%

Marital status Prevailing response

Married or partnered

63%


72%


59%

Has children

78%

67%

69%

Holds a bachelor’s degree

76%

90%

85%

Has studied abroad

35%

60%

32%

Has parents with a bachelor’s degree

48%

70%

51%

Come from entrepreneurial

family

75%

76%

66%

Prevailing MIH26

High and medium-high 72%




26

MIH: Monthly income per household ranges were derived from household surveys income data obtained in each country’s national statistics office.

Who are they?



High-growth women

entrepreneurs

High-growth men

entrepreneurs

Low-growth women

entrepreneurs

Main sector where he/she started

his/her business

Food and beverages Business services Manufacturing

Software Internet Business services

Food and beverages

Business services Retail

Reason for starting a business in that

sectors

Market opportunity

Technical expertise/

knowledge

Market opportunity


knowledge


knowledge

Market opportunity

International reach

40% 71% 27%

Main ambition when he/she

started his/her business


Multi-million dollar company with

international reach

Medium or large domestic company within their country

Is the principal owner (majority

shareholder)

73% 35% 68%

Principal partner (or co-owner)


Friends/family Colleagues Other entrepreneurs


Has a mentor

56% 64% 50%

Current business is his/her first

business

66% 40% 84%

Has considered closing the

business

26% 24% 26%

Note: Fields shaded in yellow denote significant differences with the other group studied.

What defines their

entrepreneurial activities?



High-growth women

entrepreneurs

High-growth men

entrepreneurs

Low-growth women

entrepreneurs

Main sources of support

When starting their businesses

56% Family Spouse Friends

53% Family Friends Spouse


In growing their businesses


31%

Family Entrepreneurship

associations Spouse

41% Spouse Family Private banks

Main sources of financing


88%

Personal savings/ family/friends

Private banks Other partners

79%


Other partners Government

95% Personal savings/

family/friends Private banks


82%


Private banks Government

74%

Personal savings Private banks Venture capital Other partners

84%


Private banks Other partners

Main motivation


1. Passion for own business

2. Economic independence

3. Personal challenge


2. Personal challenge 3. Economic

independence



3. Personal challenge




3. Doing something worthwhile

1. Personal challenge 2. Passion for own

business 3. Earning more

money

1. Doing something worthwhile



Who supports them and what

motivates them?



High-growth women

entrepreneurs

High-growth

men

entrepreneurs

Low-growth women

entrepreneurs

Agrees with the following statement: “What I have achieved

with my business exceeds my initial expectations.”

65%

68%

45%

Agrees with the following statement: “What I have

achieved with my business is enough for me.”

22%

21%

19%

Agrees with the following statement: “I want to keep on

growing my business.” 85%

83%

84%

Agrees that with the opportunity and the resources: “I would do

whatever I had to do to take my business to its full potential.”

88%

90%

91%


What are their goals and

aspirations?



Main personal challenges they faced when starting their businesses and currently have in

growing their business

What personal challenges do they face?

1. Fear of failure 2. Household/childcare

responsibilities 3. Lack of confidence or

motivation/poor self-image

High-growth women

entrepreneurs

High-growth men

entrepreneurs

Low-growth

women entrepreneurs

1. Maintaining work/life balance

2. Limited or ineffective networks

3. Lack of managerial knowledge

1. Fear of failure

2. Lack of confidence or

motivation/poor self-image

3. Household/childcare

responsibilities


2. Conflict among the various roles performed by a woman

3. Lack of commercial or negotiation skills

1. Normal business risks

2. Maintaining work/life

balance

3. Limited or ineffective

networks


2. Lack of commercial or negotiation skills

3. Limited or ineffective networks





Main social and cultural challenges they faced when starting their businesses and currently have

in growing their business

What social and cultural challenges do they face?

1. Did not face any challenges 2. Sex discrimination 3. Poor perception of

entrepreneurship in society and the media

High-growth women

entrepreneurs

High-growth men

entrepreneurs

Low-growth women

entrepreneurs

1. Did not face any challenges 2. Poor perception of


3. Social/family pressure



3. Sex discrimination

1. Did not face any challenges 2. Conflicts with cultural

values 3. Poor perception of


1. Did not face any challenges 2. Conflicts with cultural

values 3. Poor perception of




3. Conflicts with cultural values

In starting their businesses

To growing their business



Main business-related challenges they faced when starting their businesses and currently have

in growing their businesses

What business-related challenges do they face?

1. Lack of access to funding 2. Strong competition in the

sector 3. Lack of good coordinated

support

1. Lack of access to funding 2. Quality of the available

workforce 3. Complex regulatory

environment


sector 3. Lack of good coordinated

support

In starting their businesses


sector 3. Quality of the available

workforce


1. Quality of available workforce

2. Lack of access to funding 3. Complex regulatory

environment

1. Lack of access to funding 2. Lack of good coordinated

support 3. Quality of the available

workforce

High-growth women

entrepreneurs

High-growth men

entrepreneurs

Low-growth women

entrepreneurs


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CONSULTED ORGANIZATIONS

We appreciate the cooperation of the following organizations:

Agencia Nacional de Investigación e Innovación (Uruguay), Angel Ventures Mexico, Ellas2,

Endeavour International Corporation, Entrepreneurs’ Organization, Entrepreneur of the Year- Ernst

& Young, Instituto Nacional del Emprendedor (México), Lima Valley (Perú), Ministerio de la

Innovación de Costa Rica, Mujer Emprende (México), Mujeres Batalla (Perú), Start-up Chile, NXTP

Labs, Universidad del Pacífico (Perú), Yo Emprendedor (Costa Rica), Young Entrepreneurs

Academy, Wayra, WEConnect International, WeXchange, Women@TheFrontier.

http://www.anii.org.uy/

https://www.google.com.mx/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CC0QFjAA&url=http%3A%2F%2Fwww.endeavourcorp.com%2F&ei=wxwpU4OoOZPwyAHzu4HQCA&usg=AFQjCNGpNzbdodBQHtDWzdxKKiqiAlRrpQ&sig2=RzqSO6Wpbp0fp5NyTyMHrA&bvm=bv.62922401,d.aWc

http://weconnectinternational.org/

Multilateral Investment FundMember of the IDB Group

We’re making it our purpose to help build a better working world, starting with yours.

ey.com/betterworkingworld

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Multilateral Investment Fund1300 New York Avenue, N.W.,Washington, D.C. 20577

[email protected]

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Twitter: @fominbid

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